Apollo Global 2Q Profit, Revenue up as Total Assets Under Mgmt Jump

Dow Jones08-04
 
 

Apollo Global Management posted a second-quarter profit after recording a loss in the previous period as revenue and total assets under management jumped, offsetting a larger income tax provision.

The alternative asset manager on Tuesday posted net income of $1.36 billion, or $2.15 a share, compared with $630 million, or 99 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted net earnings were $2.11 a share. Analysts polled by FactSet expected adjusted earnings of $2.16 a share in the latest quarter.

Revenue rose to $11.15 billion from $6.81 billion in the prior year. Analysts modeled revenue of $5.65 billion.

"In a market evolving quickly with increasing demand for capital, the breadth of our origination capabilities combined with a principal mindset positions us to help shape what comes next," said Chief Executive Marc Rowan.

Apollo's income-tax provision rose to $396 million for the three months ended June 30, compared with $3 million in the year-earlier period.

The firm's net gains from investment activities stood at $63 million in the latest quarter, reversing a loss of $268 million a year earlier.

Total assets under management increased to $1.05 trillion, buoyed by inflows of $60 billion in the second quarter. Asset management inflows of $38 billion were driven by its institutional services, complemented by global wealth, while retirement services inflows of $22 billion were lifted by several organic channels, the firm said.

Fee-related earnings rose 25% to $785 million, while spread-related earnings, which are tied to Apollo's retirement-services business, climbed to $877 million from $821 million a year earlier.

 
 

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